we need meaningful change in taxation says hospitality

There are two interesting stories on Hospitality VAT today which echo much of what the NFFF has been saying for years. Fish and Chips has acted like a canary in a cage for the sector due to our tight margins but now the entire sector is being squeezed. If government want growth in the sector, if they want us to employ young people and If they want to protect independents then they need to deliver meaningful change to the rate of VAT in the upcoming budget. The NFFF have some meetings coming up where we will get the opportunity to deliver that message. 

Michelin-starred chef Tom Kitchin has admitted he would like to lower prices and pay his staff more but says current economic conditions make that impossible. At the #VATsTheProblem campaign launch in Glasgow, Kitchin told The Times: “You can go to Marks & Spencer, you can buy a deluxe meal or something – there’s no VAT on that. We want to pay people as much as we possibly can. We don’t want to charge £25 to £30 for fish and chips, we don’t want to have £10 a pint, but it’s getting to that stage now.” Kitchin opened his first restaurant, the Kitchin, 20 years ago in Edinburgh and won a Michelin star in 2007. He also runs the Scran and Scallie gastropub in the city’s Stockbridge. He sold the Bonnie Badger in East Lothian this year and shut Kora in Edinburgh last year. “Someone was asking me if I’m thinking of growing the business just now,” he said. “No, I’m not. I’m downsizing my business. I’m cutting everything that I can, which is really sad because we’ve always thrived on being entrepreneurial and employing. That’s what we want to be as a business but it’s just not the right time.”

Greene King CEO – ‘meaningful change will only come through bold reform of VAT, business rates and duty’: Greene King chief executive Nick Mackenzie has told Propel the new government is signalling support for pubs, but “meaningful change will only come through bold reform of VAT, business rates and alcohol duty” – measures he argued are essential for unlocking growth, jobs and investment. Speaking at the Propel Multi-Club Conference, Mackenzie welcomed ministers’ recent visibility in pubs but warned symbolism must now translate into policy. “The question is: what is the government going to do? If you want to back this industry then reduce VAT, business rates and, because I’m a brewer, duty.” He described business rates as “an unfair tax on bricks‑and‑mortar businesses” and said VAT reform is the fastest route to growth. “If the government keeps doing the same things but small and without impact, you’re not going to create growth,” he added. Mackenzie said taxation has directly affected youth employment. “We’ve seen a really big falloff in 16 to 20‑year‑olds in our business,” he said. “Turn that around and you create growth and stop some of the issues the government talks about.”